VAT Group (VACN) H1 2025 earnings summary

Executive summary

• Net sales rose 24% year-over-year to CHF 558 million in H1 2025, driven by strong semiconductor demand and robust backlog execution, despite significant FX headwinds and geopolitical uncertainties.

• EBITDA increased 22% to CHF 165 million, with a margin of 29.6%, slightly impacted by FX headwinds.

• Free cash flow surged 93% to CHF 51 million, supported by higher EBITDA and improved working capital.

• Innovation pipeline and R&D investment (CHF 31 million, 7% of sales) led to a 27% increase in specification wins, with adjacencies contributing 20% of wins and 45% sales growth in that area.

• Semiconductor market remains the primary driver, accounting for 71–80% of sales, with Asia (notably China) increasing its share to 35%.

Financial highlights

• Sales grew 24% year-over-year to CHF 558 million, driven by semiconductors and global services.

• EBITDA increased 22% to CHF 165 million; at constant FX, EBITDA would have risen 33%.

• EBIT rose 25% to CHF 142 million, with EBIT margin stable at 25.4%.

• Net income up 12% year-over-year to CHF 105.6–106 million, impacted by negative FX swings and higher tax rate (18.5%).

• Free cash flow conversion rate improved to 31% of EBITDA.

Outlook and guidance

• 2025 expected to be another record year, with higher orders, sales, EBITDA, margin, net income, and free cash flow versus 2024.

• Q3 2025 sales guidance: CHF 255–285 million; full-year consensus (CHF 1.1 billion) seen as achievable even with current FX rates.

• Capex forecast for 2025 is CHF 75–85 million.

• Book-to-bill ratio expected to rise above 1 in Q4, signaling acceleration into year-end.

• WFE market expected to grow ~5% in 2025, with leading-edge technology and AI adoption as key drivers.